Kering SA shares surged as the owner of the struggling Gucci fashion label prepares to name the chief executive officer of Renault SA as its next CEO in a bid for a turnaround.

French luxury group and Gucci-owner Kering has announced the appointment of former Renault CEO Luca de Meo as the new chief of the group. The strategic move strengthens the group's leadership and supports its growth trajectory.

News of Renault Chief Executive Luca de Meo's decision to leave the French carmaker and sources saying he is being lined up to take charge at luxury goods group Kering has created a stir across their respective sectors.